FRAUDE CONCEPTO Flashcards
What is the definition of fraud?
Fraud is an intentional deception made for personal gain or to damage another individual.
True or False: Fraud can only occur in financial contexts.
False
Fill in the blank: Fraud involves __________ deception.
intentional
What are the main types of fraud?
The main types of fraud include financial fraud, identity theft, corporate fraud, and insurance fraud.
Which of the following is a common method of committing fraud? A) Transparency B) Deception C) Honesty
B) Deception
What is identity theft?
Identity theft is a type of fraud where someone unlawfully obtains and uses another person’s personal information.
True or False: Fraud can only be perpetrated by individuals.
False
What is the primary motive behind committing fraud?
The primary motive is usually financial gain.
Name one legal consequence of committing fraud.
One legal consequence is imprisonment.
What does corporate fraud typically involve?
Corporate fraud typically involves deceptive practices by companies to gain an unfair advantage.
Multiple Choice: Which of the following is NOT a type of fraud? A) Credit card fraud B) Tax evasion C) Philanthropy
C) Philanthropy
Fill in the blank: Fraudulent activities can lead to significant __________ loss.
financial
What is the role of auditors in preventing fraud?
Auditors assess financial records and internal controls to detect and prevent fraud.
True or False: Fraud is always easy to detect.
False
What is the difference between fraud and a mistake?
Fraud involves intentional deception, while a mistake is an unintentional error.
What is the term for fraud committed by employees within an organization?
Employee fraud or internal fraud.
Multiple Choice: Which act was established to combat corporate fraud? A) Sarbanes-Oxley Act B) Clean Air Act C) Civil Rights Act
A) Sarbanes-Oxley Act
What is the impact of fraud on businesses?
Fraud can lead to financial losses, reputational damage, and legal penalties for businesses.
Fill in the blank: Whistleblowers can help expose __________ within organizations.
fraud
True or False: All types of fraud are punishable by law.
True
What is a Ponzi scheme?
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from newer investors.
What does the term ‘embezzlement’ refer to?
Embezzlement refers to the theft or misappropriation of funds placed in one’s trust or belonging to one’s employer.
What is the importance of ethical standards in preventing fraud?
Ethical standards promote integrity and accountability, reducing the likelihood of fraudulent behavior.
Fill in the blank: Fraud can lead to loss of __________ for victims.
trust
What is the significance of internal controls in fraud prevention?
Internal controls are significant because they help detect and prevent unauthorized transactions and fraud.
Multiple Choice: Which of the following is a method of mitigating fraud risk? A) Ignoring financial reports B) Implementing strong internal controls C) Reducing employee training
B) Implementing strong internal controls
